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Witnesses have described horrific scenes and fearful crowds in the aftermath of the attack, which has been claimed by Islamic State.

Ms Bishop described it as an "atrocity".

"The Australian government condemns this brutal and deliberate act clearly designed to harm tourists on holidays in Spain," she said.

"The Australian government extends its deepest sorrow to the victims and their families.

"We stand with the Government of Spain in denouncing this appalling act."

The federal government is asking anyone who was in the area of the attack to urgently contact consular or local authorities to let their families and friends back home in Australia know that they are safe.